NEW YORK, June 12 (Xinhua) — Crude oil futures costs plunged on Monday after Goldman Sachs slashed its forecast on oil costs.
The West Texas Intermediate (WTI) for July supply tanked 3.05 U.S. {dollars}, or 4.35 p.c, to settle at 67.12 U.S. {dollars} a barrel on the New York Mercantile Exchange. Brent crude for August supply misplaced 2.95 U.S. {dollars}, or 3.94 p.c, to settle at 71.84 U.S. {dollars} a barrel on the London ICE Futures Exchange.
Goldman Sachs has lower its forecast on Brent crude oil futures to 86 U.S. {dollars} per barrels by December 2023, down from earlier forecast of 95 U.S. {dollars} per barrel, in line with a report by the funding financial institution issued on Sunday.
Meanwhile, WTI crude oil futures are anticipated to value 81 U.S. {dollars} per barrel by the tip of 2023 moderately than the sooner forecast of 89 U.S. {dollars} per barrel.
“WTI oil retreats as traders focus on the revised forecasts from Goldman Sachs,” famous Vladimir Zernov, analyst with market data provider FX Empire.
Investors additionally stayed cautious forward of the discharge of month-to-month experiences by the International Energy Agency and the Organization of the Petroleum Exporting Countries in addition to financial coverage conferences within the United States, European Union and Japan this week.
Oil costs plummeted Monday morning as the main focus moved away from the availability facet to fears in regards to the demand facet, in line with Phil Flynn, senior analyst at The PRICE Futures Group.
“Reports that Saudi Aramco pledges to supply full crude volumes to Asian refiners despite the production cut are raising concerns about Saudi’s commitment to the lollipop go-it-alone production cut,” stated Flynn.